73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 897
House Bill 2308
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Judiciary for Oregon Trial Lawyers Association)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Revises motor vehicle liability insurance laws.
A BILL FOR AN ACT
Relating to motor vehicle liability insurance; creating new
provisions; and amending ORS 742.450, 742.502 and 742.504.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 742.502 is amended to read:
742.502. (1) Every motor vehicle liability policy insuring
against loss suffered by any natural person resulting from
liability imposed by law for bodily injury or death arising out
of the ownership, maintenance or use of a motor vehicle shall
provide therein or by indorsement thereon uninsured motorist
coverage when such policy is either:
(a) Issued for delivery in this state; or
(b) Issued or delivered by an insurer doing business in this
state with respect to any motor vehicle then principally used or
principally garaged in this state.
(2)(a) A motor vehicle bodily injury liability policy shall
have the same limits for uninsured motorist coverage as for
bodily injury liability coverage unless a named insured in
writing elects lower limits. The insured may not elect limits
lower than the amounts prescribed to meet the requirements of ORS
806.070 for bodily injury or death. Uninsured motorist coverage
larger than the amounts required by ORS 806.070 shall include
underinsurance coverage for damages or death caused by accident
and arising out of the ownership, maintenance or use of a motor
vehicle that is insured for an amount that is less than the
insured's uninsured motorist coverage. Underinsurance benefits
shall be equal to uninsured motorist coverage benefits less the
amount recovered from other automobile liability insurance
policies.
(b) A statement electing lower limits shall be signed and dated
by a named insured within 60 days of the time a named insured
elects lower limits. The statement shall acknowledge that a named
insured was offered uninsured motorist coverage with the limits
equal to those for bodily injury liability. The statement shall
contain a brief summary, which shall not be construed as part of
the insurance contract, of what uninsured and underinsured
motorist coverages provide and shall state the price for coverage
with limits equal to the named insured's bodily injury liability
limits and the price for coverage with the lower limits requested
by the named insured. The statement shall remain in force until
rescinded in writing by a named insured or until such time as
motor vehicle bodily injury liability limits are changed. The
form of statement used to comply with this paragraph shall be
approved by the department.
(c) A statement electing lower limits need not be signed when
vehicles are either added to or subtracted from a policy or when
the policy is amended, renewed, modified or replaced by the same
company or group of companies under common ownership or control
unless the liability limits of the policy are changed.
(3) The insurer issuing such policy may offer one or more
options of uninsured motorist coverage larger than the amounts
prescribed to meet the requirements of ORS 806.070 and in excess
of the limits provided under the policy for motor vehicle bodily
injury liability insurance. Offers of uninsured motorist coverage
larger than the amounts required by ORS 806.070 shall include
underinsurance coverage for damages or death caused by accident
and arising out of the ownership, maintenance or use of a motor
vehicle with liability insurance that provides recovery in an
amount that is less than the insured's uninsured motorist
coverage. Underinsurance benefits shall be equal to uninsured
motorist coverage benefits less the amount recovered from other
automobile liability insurance policies.
(4) Underinsurance coverage shall be subject to ORS 742.504 and
742.542.
(5) Except as provided in this subsection, the 'amount
recovered from other automobile liability insurance policies '
means the proceeds of liability insurance { + or the proceeds
received from a governmental entity under ORS 30.270 + }
recovered by or on behalf of the injured party. Proceeds
recovered on behalf of the injured party include proceeds
received by the injured party's insurer as reimbursement for
personal injury protection benefits provided to the injured
person, proceeds received by the medical providers of the injured
person and proceeds received as attorney fees on the claim of the
injured person. Where applicable liability insurance policy
limits are exhausted upon payment, settlement or judgment by
division among two or more injured persons, the 'amount recovered
from other automobile liability insurance policies' means the
proceeds that are recovered by or on behalf of the injured person
but does not include any proceeds of that liability policy
received by other injured persons.
SECTION 2. ORS 742.504 is amended to read:
742.504. Every policy required to provide the coverage
specified in ORS 742.502 shall provide uninsured motorist
coverage
{ - which - } { + that + } in each instance is no less
favorable in any respect to the insured or the beneficiary than
if the following provisions were set forth in the policy.
However, nothing contained in this section { - shall
require - } { + requires + } the insurer to reproduce in
{ - such - } { + the + } policy the particular language of
any of the following provisions:
(1)(a) The insurer will pay all sums { - which - } { +
that + } the insured, the heirs or the legal representative of
the insured
{ - shall be - } { + is + } legally entitled to recover as
general and special damages from the owner or operator of an
uninsured vehicle because of bodily injury sustained by the
insured caused by accident and arising out of the ownership,
maintenance or use of { - such - } { + the + } uninsured
vehicle. Determination as to whether the insured, the insured's
heirs or the insured's legal representative is legally entitled
to recover such damages, and if so, the amount thereof, shall be
made by agreement between the insured and the insurer, or, in the
event of disagreement, may be determined by arbitration as
provided in subsection (10) of this section.
(b) No judgment against any person or organization alleged to
be legally responsible for bodily injury, except for proceedings
instituted against the insurer as provided in this policy, shall
be conclusive, as between the insured and the insurer, on the
issues of liability of { - such - } { + the + } person or
organization or of the amount of damages to which the insured is
legally entitled.
(2) As used in this policy:
{ + (a) 'Bodily injury' means bodily injury, sickness or
disease, including death resulting therefrom.
(b) 'Hit-and-run vehicle' means a vehicle that causes bodily
injury to an insured arising out of physical contact of the
vehicle with the insured or with a vehicle the insured is
occupying at the time of the accident, provided:
(A) The identity of either the operator or the owner of the
hit-and-run vehicle cannot be ascertained;
(B) The insured or someone on behalf of the insured reported
the accident within 72 hours to a police, peace or judicial
officer, to the Department of Transportation or to the equivalent
department in the state where the accident occurred, and filed
with the insurer within 30 days thereafter a statement under oath
that the insured or the legal representative of the insured has a
cause or causes of action arising out of the accident for damages
against a person or persons whose identity is unascertainable,
and setting forth the facts in support thereof; and
(C) At the insurer's request, the insured or the legal
representative of the insured makes available for inspection the
vehicle the insured was occupying at the time of the
accident. + }
{ - (a) - } { + (c) + } 'Insured,' when unqualified { - ,
means - } { + and + } when applied to uninsured motorist
coverage { + , means + }:
(A) The named insured as stated in the policy and any person
designated as named insured in the schedule and, while residents
of the same household, the spouse of any { - such - } named
insured and relatives of either { - ; - } { + , + } provided
{ - , - } { + that + } neither { - such - } { + the + }
relative nor { + the + } spouse is the owner of a vehicle not
described in the policy { - ; - } and { - provided
further - } { + that + }, if the named insured as stated in the
policy is other than an individual or husband and wife who are
residents of the same household, the named insured shall be only
a person so designated in the schedule;
(B) Any child residing in the household of the named insured if
the insured has performed the duties of a parent to the child by
rearing the child as the insured's own although the child is not
related to the insured by blood, marriage or adoption; and
(C) Any other person while occupying an insured
vehicle { + , + } provided the actual use thereof is with the
permission of the named insured.
{ - (b) - } { + (d) + } 'Insured vehicle,' except as
provided in paragraph { - (c) - } { + (e) + } of this
provision, means:
(A) The vehicle described in the policy or a newly acquired or
substitute vehicle, as each of those terms is defined in the
public liability coverage of the policy, insured under the public
liability provisions of the policy; or
(B) A nonowned vehicle operated by the named insured or spouse
if a resident of the same household { - ; - } { + , + }
provided { + that + } the actual use thereof is with the
permission of the owner of { - such - } { + the + } vehicle
and { - such - } { + the + } vehicle is not owned by nor
furnished for the regular or frequent use of the insured or any
member of the same household.
{ - (c) - } { + (e) + } 'Insured vehicle' does not include
a trailer of any type unless { - such - } { + the + } trailer
is a described vehicle in the policy.
{ + (f) 'Occupying' means in or upon or entering into or
alighting from.
(g) 'Phantom vehicle' means a vehicle that causes bodily injury
to an insured arising out of a motor vehicle accident that is
caused by an automobile that has no physical contact with the
insured or the vehicle the insured is occupying at the time of
the accident, provided:
(A) The identity of either the operator or the owner of the
phantom vehicle cannot be ascertained;
(B) The facts of the accident can be corroborated by competent
evidence other than the testimony of the insured or any person
having an uninsured motorist claim resulting from the accident;
and
(C) The insured or someone on behalf of the insured reported
the accident within 72 hours to a police, peace or judicial
officer, to the Department of Transportation or to the equivalent
department in the state where the accident occurred, and filed
with the insurer within 30 days thereafter a statement under oath
that the insured or the legal representative of the insured has a
cause or causes of action arising out of the accident for damages
against a person or persons whose identity is unascertainable,
and setting forth the facts in support thereof.
(h) 'State' includes the District of Columbia, a territory or
possession of the United States and a province of Canada.
(i) 'Sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
general and special damages from the owner or operator of an
uninsured vehicle' means the amount of damages that:
(A) A claimant could have recovered in a court of law from the
owner or operator at the time of the injury after determination
of fault or comparative fault and resolution of any applicable
defenses;
(B) Are calculated without regard to the tort claims
limitations of ORS 30.260 to 30.300; and
(C) Are no larger than benefits payable under the terms of the
policy as provided in subsection (7) of this section. + }
{ - (d) - } { + (j) + } 'Uninsured vehicle,' except as
provided in paragraph { - (e) - } { + (k) + } of this
provision, means:
(A) A vehicle with respect to the ownership, maintenance or use
of which there is no collectible automobile bodily injury
liability insurance, in at least the amounts or limits prescribed
for bodily injury or death under ORS 806.070 applicable at the
time of the accident with respect to any person or organization
legally responsible for the use of { - such - } { + the + }
vehicle, or with respect to which there is { - such - }
collectible bodily injury liability insurance applicable at the
time of the accident but the insurance company writing the same
denies coverage thereunder or, within two years of the date of
the accident, { - such - } { + the + } company writing the
same becomes voluntarily or involuntarily declared bankrupt or
for which a receiver is appointed or becomes insolvent. It shall
be a disputable presumption that a vehicle is uninsured in the
event the insured and the insurer, after reasonable efforts, fail
to discover within 90 days from the date of the accident, the
existence of a valid and collectible automobile bodily injury
liability insurance applicable at the time of the accident.
(B) A hit-and-run vehicle as defined in paragraph { - (f) - }
{ + (b) + } of this provision.
(C) A phantom vehicle as defined in paragraph (g) of this
provision.
{ - (e) - } { + (k) + } 'Uninsured vehicle' does not
include:
(A) An insured vehicle;
(B) A vehicle { - which - } { + that + } is owned or
operated by a self-insurer within the meaning of any motor
vehicle financial responsibility law, motor carrier law or any
similar law;
(C) A vehicle { - which - } { + that + } is owned by the
United States of America, Canada, a state, a political
subdivision of any such government or an agency of any { - of
the foregoing - } { + such government + };
(D) A land motor vehicle or trailer, if operated on rails or
crawler-treads or while located for use as a residence or
premises and not as a vehicle;
(E) A farm-type tractor or equipment designed for use
principally off public roads, except while actually upon public
roads; or
(F) A vehicle owned by or furnished for the regular or frequent
use of the insured or any member of the household of the insured.
{ - (f) 'Hit-and-run vehicle' means a vehicle which causes
bodily injury to an insured arising out of physical contact of
such vehicle with the insured or with a vehicle which the insured
is occupying at the time of the accident, provided: - }
{ - (A) There cannot be ascertained the identity of either
the operator or the owner of such hit-and-run vehicle; - }
{ - (B) The insured or someone on behalf of the insured shall
have reported the accident within 72 hours to a police, peace or
judicial officer, to the Department of Transportation of the
State of Oregon or to the equivalent department in the state
where the accident occurred, and shall have filed with the
insurer within 30 days thereafter a statement under oath that the
insured or the legal representative of the insured has a cause or
causes of action arising out of such accident for damages against
a person or persons whose identity is unascertainable, and
setting forth the facts in support thereof; and - }
{ - (C) At the insurer's request, the insured or the legal
representative of the insured makes available for inspection the
vehicle which the insured was occupying at the time of the
accident. - }
{ - (g) 'Phantom vehicle' means a vehicle which causes bodily
injury to an insured arising out of a motor vehicle accident
which is caused by an automobile which has no physical contact
with the insured or the vehicle which the insured is occupying at
the time of the accident, provided: - }
{ - (A) There cannot be ascertained the identity of either
the operator or the owner of such phantom vehicle; - }
{ - (B) The facts of such accident can be corroborated by
competent evidence other than the testimony of the insured or any
person having an uninsured motorist claim resulting from the
accident; and - }
{ - (C) The insured or someone on behalf of the insured shall
have reported the accident within 72 hours to a police, peace or
judicial officer, to the Department of Transportation of the
State of Oregon or to the equivalent department in the state
where the accident occurred, and shall have filed with the
insurer within 30 days thereafter a statement under oath that the
insured or the legal representative of the insured has a cause or
causes of action arising out of such accident for damages against
a person or persons whose identity is unascertainable, and
setting forth the facts in support thereof. - }
{ - (h) 'Bodily injury' means bodily injury, sickness or
disease, including death resulting therefrom. - }
{ - (i) 'Occupying' means in or upon or entering into or
alighting from. - }
{ - (j) 'State' includes the District of Columbia, a
territory or possession of the United States and a province of
Canada. - }
{ - (k) - } { + (L) + } 'Vehicle' means every device in,
upon or by which any person or property is or may be transported
or drawn upon a public highway, but does not include devices
moved by human power or used exclusively upon stationary rails or
tracks.
(3) This coverage applies only to accidents { - which - }
{ + that + } occur on and after the effective date of the
policy, during the policy period and within the United States of
America, its territories or possessions, or Canada.
(4)(a) This coverage does not apply to bodily injury of an
insured with respect to which { - such - } { + the + }
insured or the legal representative of the insured shall, without
the written consent of the insurer, make any settlement with or
prosecute to judgment any action against any person or
organization who may be legally liable therefor.
(b) This coverage does not apply to bodily injury to an insured
while occupying a vehicle (other than an insured vehicle) owned
by, or furnished for the regular use of, the named insured or any
relative resident in the same household, or through being struck
by such a vehicle.
(c) This coverage does not apply so as to inure directly or
indirectly to the benefit of any workers' compensation carrier,
any person or organization qualifying as a self-insurer under any
workers' compensation or disability benefits law or any similar
law or the State Accident Insurance Fund Corporation.
(d) This coverage does not apply with respect to underinsured
motorist benefits unless:
(A) The limits of liability under any bodily injury liability
{ - bonds or policies - } { + insurance + } applicable at the
time of the accident regarding the injured person have been
exhausted by payment of judgments or settlements to the injured
person or other injured persons;
(B) The described limits have been offered in settlement, the
insurer has refused consent under paragraph (a) of this
subsection and the insured protects the insurer's right of
subrogation to the claim against the tortfeasor;
(C) The insured gives credit to the insurer for the unrealized
portion of the described liability limits as if the full limits
had been received if less than the described limits have been
offered in settlement, and the insurer has consented under
paragraph (a) of this subsection; or
(D) The insured gives credit to the insurer for the unrealized
portion of the described liability limits as if the full limits
had been received if less than the described limits have been
offered in settlement and, if the insurer has refused consent
under paragraph (a) of this subsection, the insured protects the
insurer's right of subrogation to the claim against the
tortfeasor.
(e) When seeking consent under paragraph (a) or (d) of this
subsection, the insured shall allow the insurer a reasonable time
in which to collect and evaluate information related to consent
to the proposed offer of settlement. The insured shall provide
promptly to the insurer any information that is reasonably
requested by the insurer and that is within the custody and
control of the insured. Consent will be presumed to be given if
the insurer does not respond within a reasonable time. For
purposes of this paragraph, a 'reasonable time' is no more than
30 days from the insurer's receipt of a written request for
consent, unless the insured and the insurer agree otherwise.
(5)(a) As soon as practicable, the insured or other person
making claim shall give to the insurer written proof of claim,
under oath if required, including full particulars of the nature
and extent of the injuries, treatment and other details entering
into the determination of the amount payable hereunder. The
insured and every other person making claim hereunder shall
submit to examinations under oath by any person named by the
insurer and subscribe the same, as often as may reasonably be
required. Proof of claim shall be made upon forms furnished by
the insurer unless the insurer { - shall have failed - }
{ + fails + } to furnish { - such - } { + the + } forms
within 15 days after receiving notice of claim.
(b) Upon reasonable request of and at the expense of the
insurer, the injured person shall submit to physical examinations
by physicians selected by the insurer and shall, upon each
request from the insurer, execute authorization to enable the
insurer to obtain medical reports and copies of records.
(6) If, before the insurer makes payment of loss hereunder, the
insured or the legal representative of the insured { - shall
institute - } { + institutes + } any legal action for bodily
injury against any person or organization legally responsible for
the use of a vehicle involved in the accident, a copy of the
summons and complaint or other process served in connection with
{ - such - } { + the + } legal action shall be forwarded
immediately to the insurer by the insured or the legal
representative of the insured.
(7)(a) The limit of liability stated in the declarations as
applicable to 'each person' is the limit of the insurer's
liability for all damages because of bodily injury sustained by
one person as the result of any one accident and, subject to the
above provision respecting each person, the limit of liability
stated in the declarations as applicable to 'each accident' is
the total limit of the company's liability for all damages
because of bodily injury sustained by two or more persons as the
result of any one accident.
(b) Any payment made under this coverage to or for an insured
shall be applied in reduction of any amount { - which - }
{ + that + } the insured may be entitled to recover from any
person who is an insured under the bodily injury liability
coverage of this policy.
(c) Any amount payable under the terms of this coverage because
of bodily injury sustained in an accident by a person who is an
insured under this coverage shall be reduced by:
(A) All sums paid on account of { - such - } { + the + }
bodily injury by or on behalf of the owner or operator of the
uninsured vehicle and by or on behalf of any other person or
organization jointly or severally liable together with
{ - such - } { + the + } owner or operator for
{ - such - } { + the + } bodily injury { + , + } including
all sums paid under the bodily injury liability coverage of the
policy; and
(B) The amount paid and the present value of all amounts
payable on account of { - such - } { + the + } bodily injury
under any workers' compensation law, disability benefits law or
any similar law.
(d) Any amount payable under the terms of this coverage because
of bodily injury sustained in an accident by a person who is an
insured under this coverage shall be reduced by the credit given
to the insurer pursuant to subsection (4)(d)(C) or (D) of this
section.
(e) The amount payable under the terms of this coverage
{ - shall - } { + may + } not be reduced by the amount of
liability proceeds offered, described in subsection (4)(d)(B) or
(D) of this section, that has not been paid to the injured
person. If liability proceeds have been offered and not paid, the
amount payable under the terms of the coverage shall include the
amount of liability limits offered but not accepted due to the
insurer's refusal to consent. The insured shall cooperate so as
to permit the insurer to proceed by subrogation or assignment to
prosecute the claim against the uninsured motorist.
(8) No action shall lie against the insurer unless, as a
condition precedent thereto, the insured or the legal
representative of the insured has fully complied with all the
terms of this policy.
(9)(a) Except as provided in paragraph (c) of this subsection,
with respect to bodily injury to an insured while occupying a
vehicle not owned by a named insured under this coverage, the
insurance under this coverage shall apply only as excess
insurance over any other insurance available to { - such - }
{ + the + } occupant { - which - } { + that + } is similar
to this coverage, and this insurance shall then apply only in the
amount by which the applicable limit of liability of this
coverage exceeds the sum of the applicable limits of liability of
all { - such - } other insurance.
(b) With respect to bodily injury to an insured while occupying
or through being struck by an uninsured vehicle, if
{ - such - } { + the + } insured is an insured under other
insurance available to the insured { - which - } { + that + }
is similar to this coverage, then the damages shall be deemed not
to exceed the higher of the applicable limits of liability of
this insurance or { - such - } other insurance, and the
insurer { - shall not be - } { + is not + } liable under this
coverage for a greater proportion of the damages than the
applicable limit of liability of this coverage bears to the sum
of the applicable limits of liability of this insurance and
{ - such - } other insurance.
(c) With respect to bodily injury to an insured while occupying
any motor vehicle used as a public or livery conveyance, the
insurance under this coverage shall apply only as excess
insurance over any other insurance available to the insured
{ - which - } { + that + } is similar to this coverage, and
this insurance shall then apply only in the amount by which the
applicable limit of liability of this coverage exceeds the sum of
the applicable limits of liability of all { - such - } other
insurance.
(10) If any person making claim hereunder and the insurer do
not agree that { - such - } { + the + } person is legally
entitled to recover damages from the owner or operator of an
uninsured vehicle because of bodily injury to the insured, or do
not agree as to the amount of payment { - which - } { +
that + } may be owing under this coverage, then, in the event the
insured and the insurer elect by mutual agreement at the time of
the dispute to settle the matter by arbitration, the arbitration
shall take place under the arbitration laws of the State of
Oregon or, if the parties agree, according to any other
procedure. Any judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction
thereof { + , + } provided, however, { + that + } the costs to
the insured of the arbitration proceeding { - shall - } { +
do + } not exceed $100 and that all other costs of arbitration
{ - shall be - } { + are + } borne by the insurer. 'Costs' as
used in this provision { - shall - } { + does + } not include
attorney fees or expenses incurred in the production of evidence
or witnesses or the making of transcripts of the arbitration
proceedings. { - Such - } { + The + } person and the insurer
each agree to consider themselves bound and to be bound by any
award made by the arbitrators pursuant to this coverage in the
event of such election. At the election of the insured,
{ - such - } { + the + } arbitration shall be held:
(a) In the county and state of residence of the insured;
(b) In the county and state where the insured's cause of action
against the uninsured motorist arose; or
(c) At any other place mutually agreed upon by the insured and
the insurer.
(11) In the event of payment to any person under this coverage:
(a) The insurer shall be entitled to the extent of
{ - such - } { + the + } payment to the proceeds of any
settlement or judgment that may result from the exercise of any
rights of recovery of { - such - } { + the + } person against
any uninsured motorist legally responsible for the bodily injury
because of which { - such - } payment is made;
(b) { - Such - } { + The + } person shall hold in trust for
the benefit of the insurer all rights of recovery { - which - }
{ + that + } the person shall have against such other uninsured
person or organization because of the damages { - which - }
{ + that + } are the subject of claim made under this coverage,
but only to the extent that { - such - } { + the + } claim is
made or paid herein;
(c) If the insured is injured by the joint or concurrent act or
acts of two or more persons, one or more of whom is uninsured,
the insured shall have the election to receive from the insurer
any payment to which the insured would be entitled under this
coverage by reason of the act or acts of the uninsured motorist,
or the insured may, with the written consent of the insurer,
proceed with legal action against any or all persons claimed to
be liable to the insured for { - such - } { + the + }
injuries. If the insured elects to receive payment from the
insurer under this coverage, then the insured shall hold in trust
for the benefit of the insurer all rights of recovery the insured
shall have against any other person, firm or organization because
of the damages { - which - } { + that + } are the subject of
claim made under this coverage, but only to the extent of the
actual payment made by the insurer;
(d) { - Such - } { + The + } person shall do whatever is
proper to secure and shall do nothing after loss to prejudice
such rights;
(e) If requested in writing by the insurer, { - such - }
{ + the + } person shall take, through any representative not
in conflict in interest with { - such - } { + the + } person,
designated by the insurer, such action as may be necessary or
appropriate to recover { - such - } payment as damages from
such other uninsured person or organization, such action to be
taken in the name of { - such - } { + the + } person, but
only to the extent of the payment made hereunder. In the event of
a recovery, the insurer shall be reimbursed out of { - such - }
{ + the + } recovery for expenses, costs and attorney fees
incurred by { - it - } { + the insurer + } in connection
therewith; and
(f) { - Such - } { + The + } person shall execute and
deliver to the insurer { - such - } { + any + } instruments
and papers as may be appropriate to secure the rights and
obligations of { - such - } { + the + } person and the
insurer established by this provision.
(12)(a) The parties to this coverage agree that no cause of
action shall accrue to the insured under this coverage unless
within two years from the date of the accident:
(A) Agreement as to the amount due under the policy has been
concluded;
(B) The insured or the insurer has formally instituted
arbitration proceedings;
(C) The insured has filed an action against the insurer
{ - in a court of competent jurisdiction - } ; or
(D) Suit for bodily injury has been filed against the uninsured
motorist { - in a court of competent jurisdiction - } and,
within two years from the date of settlement or final judgment
against the uninsured motorist, the insured has formally
instituted arbitration proceedings or filed an action against the
insurer { - in a court of competent jurisdiction - } .
(b) For purposes of this subsection:
(A) 'Date of settlement' means the date on which a written
settlement agreement or release is signed by an insured or, in
the absence of { - such - } { + these + } documents, the date
on which the insured or the attorney for the insured receives
payment of any sum required by the settlement agreement. An
advance payment as defined in ORS 31.550 shall not be deemed a
payment of a settlement for purposes of the time limitation in
this subsection.
(B) 'Final judgment' means a judgment that has become final by
lapse of time for appeal or by entry in an appellate court of an
appellate judgment.
SECTION 3. ORS 742.450 is amended to read:
742.450. (1) Every motor vehicle liability insurance policy
issued for delivery in this state shall state the name and
address of the named insured, the coverage afforded by the
policy, the premium charged therefor, the policy period and the
limits of liability.
(2) Every motor vehicle liability insurance policy issued for
delivery in this state shall contain an agreement or indorsement
stating that, as respects bodily injury and death or property
damage, or both, the insurance provides either:
(a) The coverage described in ORS 806.070 and 806.080; or
(b) The coverage described in ORS 806.270.
(3) The agreement or indorsement required by subsection (2) of
this section shall also state that the insurance provided is
subject to all the provisions of the Oregon Vehicle Code relating
to financial responsibility requirements as defined in ORS
801.280 or future responsibility filings as defined in ORS
801.290, as appropriate.
(4) Every motor vehicle liability insurance policy issued for
delivery in this state shall provide liability coverage to at
least the limits specified in ORS 806.070.
(5) Every motor vehicle liability insurance policy issued for
delivery in this state shall provide liability coverage, up to
the limits of coverage under the policy for a vehicle owned by
the named insured, for the operation by the named insured of a
motor vehicle provided to the named insured, without regard to
whether the named insured is charged for the use of the motor
vehicle, if:
(a) The motor vehicle is provided to the named insured by a
person engaged in the business of repairing or servicing motor
vehicles; and
(b) The motor vehicle is provided to the named insured as a
temporary replacement vehicle while the named insured's vehicle
is being repaired or serviced.
(6) A motor vehicle liability insurance policy issued for
delivery in this state may exclude by name from coverage required
by subsection (2)(a) of this section any person other than the
named insured, for any of the reasons stated in subsection (7) of
this section. When an insurer excludes a person as provided by
this subsection, the insurer shall obtain a statement or
indorsement, signed by each of the named insureds, that the
policy will not provide any coverage required by subsection
(2)(a) of this section when the motor vehicle is driven by any
named excluded person.
(7) A person may be excluded from coverage under a motor
vehicle liability insurance policy as provided in subsection (6)
of this section:
(a) Because of the driving record of the person. The Director
of the Department of Consumer and Business Services by rule may
establish restrictions on the use of the driving record in
addition to other restrictions established by law.
(b) Because of any reason or set of criteria established by the
director by rule.
{ + (8) A motor vehicle liability insurance policy issued for
delivery in this state may not contain an exclusion that would
preclude coverage for family members residing in the same
household as the insured. + }
SECTION 4. { + The amendments to ORS 742.450, 742.502 and
742.504 + } { + by sections 1 to 3 of this 2005 Act apply to
motor vehicle liability insurance policies issued or renewed on
or after the effective date of this 2005 Act. + }
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